In early March 2026, Nationwide, Virgin Money and NatWest increased their fixed-rate mortgage products by up to 0.25 percentage points. The rises were triggered by surging swap rates — the wholesale benchmarks that determine fixed-rate pricing — driven by Middle East conflict and rising energy costs.
What's Happening to Mortgage Rates This Week?
Fixed mortgage rates have risen at several major lenders as higher wholesale funding costs and uncertainty over a Bank of England rate cut feed through to the home loan market.
Nationwide, Virgin Money and NatWest have all moved to reprice portions of their fixed-rate ranges after a sharp increase in swap rates linked to the conflict in the Middle East and higher energy prices.
Nationwide Building Society
Nationwide has increased selected fixed rates by up to 0.25 percentage points. The changes affect products for first-time buyers, home movers, existing borrowers moving home, remortgage customers, product switchers and additional borrowing.
Virgin Money
Virgin Money has also raised rates on a number of fixed products by as much as 0.25 percentage points, including purchase, remortgage and product transfer deals. The new pricing took effect on 6 March.
NatWest
NatWest announced increases of up to 0.16 percentage points across purchase, remortgage, first-time buyer, shared equity, green and buy-to-let ranges, effective 7 March.
Why Are Swap Rates Rising?
The repricing comes as swap rates — which lenders use to hedge fixed-rate mortgage funding — have climbed to their highest levels in around a month. Strong gains in gas and oil prices have fuelled concerns about renewed inflationary pressure.
According to Moneyfacts, two-year swap rates rose from 3.33% to 3.65% over the past seven days, while five-year swaps moved from 3.50% to 3.80% over the same period.
What Does This Mean for Bank of England Rate Cuts?
The prospect of a Bank Rate reduction at the Monetary Policy Committee's March 19 meeting has become far less certain, with markets now questioning how quickly policy can be eased if inflation proves more persistent.
Nicholas Mendes, mortgage technical manager at John Charcol, noted: "Markets are now pricing in the possibility of only one rate cut for the whole of this year at best, and the reduction that had looked almost certain at the next Bank of England meeting now appears far less assured."
Average mortgage rates had been edging down in recent weeks as headline inflation slowed to 3% in the year to January, from 3.4% a month earlier. That downward trajectory has now stalled.
What Industry Experts Are Saying
David Hollingworth, associate director at L&C Mortgages, warned: "Once we enter this cycle of lenders adjusting their rates, we know that it almost invariably results in others following suit. The current uncertainty means that this upward pressure doesn't look likely to ease quickly."
Adam French, head of consumer finance at Moneyfacts, added: "Global geopolitical events move markets, markets move swap rates, and swap rates ultimately shape the deals available to borrowers."
What Should Borrowers Do Now?
For borrowers, the key message is that periods of market volatility can lead to lenders adjusting rates quickly. Securing a deal early can provide a degree of protection — particularly as most lenders allow borrowers to move onto a cheaper rate before completion if pricing improves.
If you're looking to purchase, remortgage, or your current fixed deal is ending soon, speaking to a mortgage broker now could help you lock in before further increases.
Frequently Asked Questions
- Why are mortgage rates going up in March 2026?
- Swap rates — the wholesale benchmarks lenders use to price fixed-rate deals — have surged due to the Middle East conflict pushing up oil and gas prices. This has reignited inflation fears and made lenders reprice their mortgage ranges upward.
- Which lenders have raised rates?
- Nationwide, Virgin Money and NatWest have all confirmed increases. Santander pulled its competitive 3.99% five-year fix earlier in the week. Brokers expect more lenders to follow in the coming days.
- Will the Bank of England still cut rates in March?
- Markets now see it as very unlikely. Before the conflict, there was an 81% implied probability of a March cut — that has fallen to around 24%. Most analysts now expect at most one cut across all of 2026.
- Should I lock in a mortgage rate now?
- If you're close to purchasing or remortgaging, securing a rate offer now gives you protection. Most lenders allow you to switch to a cheaper rate before completion if pricing improves — so there's limited downside to acting early.
Sources & References
- Interest rate statistics — Bank of England
- Swap rate data — Investing.com
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